Crypto News: BTC Stabilizes, Awaiting Key SEC Decisions

Key Insights:

• Ethereum (ETH) sees bearish sentiment with dwindling staking inflows.
• Despite setbacks, JPMorgan and the former SEC Chairman foresee an inevitable BTC-Spot ETF approval.
• The crypto market hangs in anticipation as investors await the SEC v Coinbase ruling.

The Sunday Overview

Gala Stumbles on CEO Lawsuit: Gala (GALA) was the worst-performing crypto from the top 100, down 10% over 24 hours. Crypto investors responded to the news of Gala Games investors and Blockchain Game Partners (BGP) filing a lawsuit against Gala Games CEO and co-founder Eric Schiermeyer. The filing followed a Schiermeyer claim against Wright Thurston, another co-founder, for allegedly stealing $130 million equivalent of GALA tokens.

Bitwise Withdraws ETF Application: News of Bitwise withdrawing its Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF hit the wires. According to the August 31 filing, Bitwise Funds Trust ‘no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold or will be sold.’ The Trust submitted the ETF application on August 3.

BTC-Spot ETFs: Despite the Bitwise withdrawal, JPMorgan analysts and former SEC Chairman Jay Clayton believe the SEC will eventually approve BTC-Spot ETFs. In an interview with CNBC, Clayton said, “An approval is inevitable. The dichotomy between a futures product and a cash product can’t go on forever. So, I think that’s the path we’re on.”

SHIB Investors Ignore Network News: Shiba inu coin (SHIB) extended its losing streak to five sessions, falling by 1.79% to end Sunday at $0.00000769. Investors brushed aside an update from Shiba Inu developer Kaal Dhairya. Kaal announced the rollout of Blockscout Explorer on Shibariumscan, saying, “This allows our small yet dedicated protocol team to focus on the network and its upgrades, while the fantastic Blockscout team ensures the explorer remains operational and the chain is 100% indexed.”

Bitcoin (BTC) rose by 0.45% on Sunday. Following a 0.21% gain on Saturday, BTC ended the week down 0.40% to $26,051. Dip buyers provided weekend support in the hope of the SEC eventually approving the BTC-Spot ETF applications.

Ethereum (ETH) slipped by 0.06% on Sunday. Partially reversing a 0.50% gain from Saturday, ETH ended the week down 1.33% to $1,636. Staking inflows reflected the bearish sentiment, with inflows falling to the lowest level since July 9.

The Monday Session

After modest BTC and ETH gains over the weekend, the investor focus will likely turn to the ongoing SEC v Coinbase (COIN) case. The markets await a Court ruling on the Coinbase motion to dismiss. The consensus is that, should Judge Failla grant the MTD, the SEC will settle the case against Ripple. Republican Senator Cynthia Lummis, among others, called on the Court to dismiss the case on August 11.

Beyond the SEC v Coinbase case, we expect BTC-Spot ETF-related news and US lawmaker chatter to draw interest.

Following the Ripple opposition filing on Friday, the SEC must respond to the Ripple filing by September 8. An early filing would need consideration.

Bitcoin (BTC) Price Actions

Daily Chart

BTC remained above the trend line and the $25,506 support level this morning. However, resistance at $26,000 continued to cap the upside and leave BTC short of the $26,755 resistance level. A shift in sentiment toward the SEC review of the BTC-Spot ETFs would deliver a breakout.

However, BTC must avoid the trend line to give the bulls a run at $26,500 and the $26,755 resistance level. Failure to revisit $26,500 would leave the trend line and $25,506 support level in view. A bearish cross of the 50-day EMA through the 200-day EMA would see BTC break below the trend line and $25,506 support band to target sub-$25,000.

Looking at the 14-Daily RSI, the 37.16 reading indicates BTC can fall below $25,500 before entering oversold territory.

4-Hourly Chart

BTC remains above the trend line and the $25,506 support band. However, BTC sits below the 200-day and 50-day EMAs, sending bearish price signals.

Holding above the trend line would support a run at the 50-day EMA and the $26,755 resistance level. However, BTC needs a bullish crypto event to break out from the 50-day EMA.

The 14-4H RSI reading of 43.91 shows BTC can fall further before entering oversold territory. The bearish indicators leave the trend line and the $25,506 support level in play.

Ethereum Price Action

Daily Chart

The Daily Chart showed ETH above the $1,626 support level. However, ETH sat below the EMAs and the trend line, sending bearish price signals. Investor sentiment toward the ongoing SEC cases against Ripple and Coinbase and SEC delays in approving BTC-spot ETFs remained headwinds.

An ETH move through $1,650 would give the bulls a run at $1,700 and the $1,746 resistance level and 50-day EMA. However, the 50-day EMA is confluent with the resistance level, signaling strong resistance at $1,750. Failure to break through $1,650 would leave the $1,626 support level and sub-$1,600 in play.

Looking at the 14-Daily RSI, 36.89 showed ETH could fall further before entering oversold territory.

4-Hourly Chart

ETH/USD remains below the 200-day and 50-day EMAs and the trend line, a bearish price signal. However, ETH holds above the $1,626 support level. A move through the 50-day EMA would give the bulls a run at the 200-day EMA and $1,746 resistance level.

However, a lack of crypto-friendly news would leave the $1,626 support level and sub-$1,600 in view.

The 14-4H RSI reading of 41.98 shows ETH can fall through the $1,626 support level and return to sub-$1,600 before entering oversold territory.